KCA Deutag gets consents to allow new debt financing under two series

By Susanna Moon

Chicago, March 20 – KCA Deutag Alpha Ltd. said that its subsidiary KCA Deutag UK Finance plc has obtained the needed majority of consents to amend its $375 million of 7¼% senior secured notes due 2021 and its $535 million of 9 7/8% senior secured notes due 2022.

The supplemental indentures have been executed for each of the note series, according to a company update on Tuesday.

As announced March 13, the company was seeking to amend the indenture to allow for a new debt financing and to extend the deadline for publishing its quarterly report for the period ending June 30, 2018.

KCA Deutag announced on March 5 that it has agreed to acquire the Omani and Saudi Arabian businesses of Dalma Energy LLC.

To finance the acquisition, the company expects to use $425 million of senior secured bonds plus cash on its balance sheet and class A ordinary shares of KCAD Holdings I Ltd.

The bonds plus possible credit facility borrowings will make up the debt financing.

A consent payment of $5.00 per $1,000 principal amount will be made to holders who deliver consents.

The solicitation ended at 5 p.m. ET on March 19.

Citigroup Global Markets Ltd. (+44 20 7986 8969, 800 558-3745, 212 723-6106 or liabilitymanagement.europe@citi.com) is solicitation agent. D.F. King & Co., Inc. (kcadeutag@dfkingltd.com, https://sites.dfkingltd.com/kcadeutag, +44 20 7920 9700, 212 269-5550 or 866 796-7179) is information agent and tabulation agent.

KCA Deutag is an Aberdeen, U.K., drilling and engineering contractor for onshore and offshore oil, gas and geothermal markets.

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